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U.S. and EU claim victory in Boeing subsidy case

Boeing received $3 billion in illegal U.S. subsidies over a period of eight years, the WTO said Monday. Its European rival, Airbus, has been given $18 billion over a period of decades.

NEW YORK (CNNMoney) -- The World Trade Organization issued a ruling Monday to settle a dispute between the European Union and United States over subsidies received by Boeing. Officials on both sides of the Atlantic quickly sought to portray the decision as a victory for their domestic airline industries.

"This decision is a tremendous victory for American manufacturers and workers," said U.S. Trade Representative Ron Kirk in a statement

In 2004, EU authorities claimed Boeing (BA, Fortune 500) received $19 billion in unfair subsidies from federal and state governments between 1989 and 2006.

The U.S. government filed a similar claim the same year against Germany, France, the United Kingdom, Spain and the EU over subsidies given to Airbus, owned by European Aeronautic Defense & Space Co. (EADS).

According to Monday's ruling, the WTO's appellate body said Boeing received between $3 billion and $4 billion in U.S. subsidies, according to Kirk.

By contrast, the WTO said in December that Airbus received $18 billion in subsidies from European governments.

In a shot at its European rival, Boeing said, "Airbus has not shown the same commitment to compliance with the WTO's decisions and rules."

Airbus continues to benefit from generous subsidies from European governance "in defiance of the WTO," according to Boeing.

Rep. Rick Larsen, who represents a district in Washington state near Boeing's Everett plant, hailed the decision as vindication for America's aerospace workers.

"Today's announcement is a validation of what I have been saying all along: Boeing has had to play on an uneven playing field as Airbus has juiced up on illegal fiscal steroids," Larsen said in a statement.